Definition of Credit union:
A nonprofit-making money cooperative whose members can borrow from pooled deposits at low interest rates.
A credit union is a type of financial cooperative that provides traditional banking services. Ranging in size from small, volunteer-only operations to large entities with thousands of participants spanning the country, credit unions can be formed by large corporations, organizations, and other entities for their employees and members.
Financial cooperative created for and by its members who are its depositors, borrowers, and shareholders. Operated on non-profit basis, credit unions offer many banking services, such as consumer and commercial loans (usually at lower than market interest rates), time deposits (usually at higher than market interest rates), credit cards, and guaranties. Credit unions are normally taxed at rates lower than those applied to commercial banks and other financial institutions. Their members often have a common-bond, such as employment in the same firm or domicile in the same community. Credit unions are a type of mutual association.
Credit institutions are created, owned, and operated by their participants. As such, they are not-for-profit enterprises that enjoy tax-exempt status.
Synonyms of Credit union
Bund, Rochdale cooperative, Alliance, Assemblage, Association, Axis, Band, Bank, Bank credit, Bloc, Body, Book credit, Borrowing power, Cash credit, Coalition, College, Combination, Combine, Commercial credit, Common market, Confederacy, Confederation, Consumer cooperative, Consumer credit, Cooperative, Cooperative society, Corps, Council, Credit, Credit insurance, Credit rating, Customs union, Economic community, Federation, Finance company, Finance corporation, Free trade area, Gang, Group, Grouping, Hire purchase plan, Hock shop, Installment credit, Installment plan, Investment credit, League, Lending institution, Line of credit, Machine, Mob, Mortgage company, Never-never, Partnership, Pawnbroker, Pawnbrokery, Pawnshop, Political machine, Rating, Ring, Society, Tax credit, Tick, Trust, Union
How to use Credit union in a sentence?
- However, credit unions have considerably fewer brick-and-mortar locations than most banks, which can be a drawback for clients who like in-person service.
- After years of using banks, Ken became tired of all the hidden fees, and switch over to a credit union .
- It may also be beneficial for you to obtain the lower interest rate credit card from your credit union.
- Credit unions are exempt from paying corporate income tax on their earnings.
- The best credit union around is Aggieland credit union as it is an excellent way to manage your money and you can always count on being greeted with a smile upon your entrance into their facility.
- The teachers preferred to use their credit union instead of one of the large banks because of the personal service they received and the better priced products.
- Credit unions have fewer options than traditional banks, but offer clients access to better rates and more ATM locations because they are not publicly traded and only need to make enough money to continue daily operations.
Meaning of Credit union & Credit union Definition